U.S. Customs and Border Protection (CBP) provided a more detailed view of how the CAPE platform will function in practice in its March 31, 2026 declaration filed with the Court of International Trade. The update does not change the current timing of refunds. It does clarify how Phase 1 will be structured, which entries qualify, and how CBP will sequence more complex scenarios. This update moves beyond general system development and begins to define how CAPE will operate at the entry level.
WHAT CHANGED IN THE MARCH 31 CAPE UPDATE?
In this update, CBP refined the scope of Phase 1 processing and clarified how it will handle different entry statuses. Phase 1 focuses on a defined subset of entries rather than all eligible claims. CAPE will also separate tariff recalculation from refund timing in certain scenarios. CBP confirmed that development continues across all components, with several areas now in advanced testing as deployment approaches.
WHAT ENTRIES WILL CAPE PHASE 1 ACTUALLY PROCESS?
Phase 1 targets entries that fit within existing statutory and system constraints. CBP confirmed that Phase 1 includes unliquidated entries and those within the 90-day voluntary reliquidation window under 19 U.S.C. § 1501. These categories represent approximately 63 percent of entries where IEEPA duties were paid or deposited.
CBP also expanded which entries can be submitted through CAPE in Phase 1, even when refunds will not be issued immediately:
- Entries with suspended, extended, or under review liquidation status
- Entries subject to antidumping or countervailing duties where liquidation remains suspended
- Warehouse and warehouse withdrawal entries
In these cases, CAPE removes IEEPA tariff lines and recalculates duties. CBP will issue refunds through the normal liquidation process rather than at submission.
WHICH ENTRIES REMAIN OUT OF SCOPE FOR PHASE 1?
Several entry types remain outside Phase 1 due to complexity or compliance considerations. These include finally liquidated entries, reconciliation entries, drawback-designated entries, entries under protest, and entries that do not reflect a valid liquidation status in ACE. Certain AD/CVD entries that are pending liquidation instructions also remain excluded. CBP plans to address these scenarios in later phases as additional system capabilities come online.
HOW WILL PROCESSING AND TIMELINES WORK UNDER CAPE?
The update provides additional detail on how CAPE will function once submissions begin:
- Importers and brokers will submit claims through a structured portal within ACE
- CBP may take up to 45 days to review and liquidate validated entries
- CBP may extend review timelines when compliance concerns arise
CAPE also tracks each adjustment made to an entry, creating an auditable record of how duties are recalculated. CBP will issue refunds electronically to the importer of record or an authorized designee, consistent with current federal payment requirements.
WHAT DOES THIS UPDATE SIGNAL FOR FUTURE CAPE PHASES?
Phase 1 remains intentionally limited. CBP confirmed that future phases will expand processing to finally liquidated entries, incorporate reconciliation and drawback scenarios, and introduce more advanced validation and financial controls. The agency is also developing enhanced interest calculations, particularly for entries with multiple collection dates.
Additional context on prior CAPE and IEEPA developments is available in recent updates covering the evolving refund process and court directives here:
CBP IEEPA TARIFF REFUND PROCESS EXPANDS AS CIT AMENDS ORDER AND MAINTAINS REFUND SUSPENSION
CIT EXPANDS IEEPA TARIFF REFUND ORDER TO INCLUDE BRAZIL AND INDIA, MAINTAINS IMPLEMENTATION PAUSE
CBP’S IEEPA TARIFF REFUND SYSTEM (CAPE) ADVANCES: UPDATED CIT FILING SHOWS PROGRESS
CBP’S IEEPA TARIFF REFUND SYSTEM (CAPE) TAKES SHAPE: LATEST CIT UPDATE
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